Cau+onary Notes. Avnel Gold MINING LIMITED 2 TSX:AVK

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2 Cau+onary Notes Forward Looking Statements: This presentation contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities legislation, concerning the business, operations and financial performance and condition of the Company. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may constitute forward-looking statements. Forward-looking statements contained in this presentation include statements with respect to: expectations regarding the potential mineralization and geological merits of the Company's projects, including the Kalana Project and the Fougadian Project; the Company's goals regarding development of the Kalana Project and regarding raising capital and conducting further exploration and development of its projects; the Company's proposed plans for advancing its projects, including drilling and other exploration work; expectations regarding the continuity of mineral deposits, including in relation to adjacent or other properties (including producing or past-producing properties) that are in the vicinity or same region as the Company's projects; expectations regarding any environmental issues that may affect planned or future exploitation and exploration programs; mineral exploitation and exploration program cost estimates; statements with respect to the future price of gold and other metals; timing and completion of geological studies and reports; receipt and timing of the Kalana Project exploitation permits and other third party approvals; and government regulation of mineral exploration and development operations in Mali. Estimates of mineral resources and mineral reserves may also constitute forward-looking statements and information in that they represent estimates of mineralization that may be encountered if mining is commenced, and/or economic viability of such mineralization. Forward-looking statements and forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements or forward-looking information, including but not limited to: (i) political developments in Mali, whether generally or in respect of the mining industry specifically, which may not be consistent with the Company s current expectations, (ii) the Company s expectations in connection with the projects, exploration programs and development plans discussed herein being met, (iii) the ability to develop the Kalana Project on a basis consistent with the Company s current expectations, (iv) changes in project parameters as the Kalana Project continues to be advanced, (v) changes in project development, construction, production and commissioning time frames, (vi) the possibility of project cost overruns or unanticipated costs and expenses, (vii) unanticipated results of future studies, (viii) costs and timing of the development of new deposits, (ix) success of exploration and drilling activities, (x) risks and uncertainties relating to the interpretation of drill results and other exploration data, and the geology, grade and continuity of mineral deposits, (xi) the possibility that future exploration results will not be consistent with the Company's expectations, (xii) risks related to metallurgical characteristics of mineralization contained within the Company's properties which may not be fully determined, (xiii) potential delays in completion of geological reports (including preliminary economic assessments, pre-feasibility and feasibility studies), or that the contents of geological reports will not be consistent with the Company's expectations, (xiv) permitting time lines, (xv) government regulation and the risk of government expropriation or nationalization of mining operations, (xvi) unanticipated environmental risks, (xvii) the continued employment of key employees, and (xviii) the factors discussed in the section entitled Cautionary Statement Regarding Forward-Looking Statements in the Company s annual information form which is available under the Company's profile on the SEDAR website at These forward-looking statements are based on certain assumptions which the Company believes are reasonable, including that: all necessary government and third party permits, approvals and licenses necessary for the planned exploration and development of the Company's mineral projects will be obtained in a timely manner and on terms acceptable to the Company; key management and directors will continue to be retained by the Company; any proposed future development of the Company's mineral projects will be viable operationally and economically and proceed as expected; and the other assumptions listed in the section entitled Cautionary Statement Regarding Forward-Looking Statements in the Company s annual information form which is available under the Company's profile on the SEDAR website at Assumptions relating to the potential mineralization on the Company's Kalana Project are discussed in the most recent technical reports in respect thereof which are available under the Company's profile on the SEDAR website at There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update any of the forward-looking statements or forward-looking information in this presentation, except as required by applicable law. Disclosure of Mineral Reserves and Mineral Resources: Information concerning the properties and operations of the Company has been prepared in accordance with Canadian standards under applicable Canadian securities laws. National Instrument Standards of Disclosure for Mineral Projects ("NI ") of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Please refer to the Company s annual information form and other continuous disclosure documents available at for this detailed information, which is subject to the qualifications and notes set forth therein. Qualified Person: Information in this presentation regarding the Kalana Gold Project and exploration activities is provided by Avnel management under the supervision of Dr. Olivier Féménias, Vice-President Geology and Mr. Roy Meade, President, whom are all non-independent Qualified Persons as such term is defined in National Instrument Portions of the information are based on assumptions, qualifications and procedures which may not be fully described herein. Cautionary Note to U.S. Readers Concerning Mineral Reserve and Resource Estimates: This presentation uses the terms "Mineral Resource", "Inferred Mineral Resource", and Probable Mineral Reserves, Canadian mining terms as defined in accordance with NI under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council. While the use of such terms is recognized and required by Canadian regulators, the United States Securities and Exchange Commission does not recognize such terms. For further information, refer to the Company s website at All dollar amounts are in US dollars, unless otherwise indicated. References to $C are to Canadian dollars. Avnel Gold MINING LIMITED 2 TSX:AVK

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4 Capital Structure and Shareholders The Kalana Main DFS is funded for delivery by the end of Q Shares Outstanding 1 304,330,124 More than 65% Institutionally Owned Stock Option Plans 7,635,000 Elliott Management Warrants 96,257,176 Gold2000 (Julius Baer) Fully Diluted 408,222,300 Earth Resource Quantex Recent Share Price C$0.235 Picton Mahoney Millennium Market Capitalization C$72 million Cash & Equivalents 2 US$9 million High Management Ownership 4 Working Capital 3 US$11 million 11.8% Debt None 1 As at 11 November Unaudited management estimate as at 30 September 2015 (US$9.175 million). 3 Unaudited management estimate as at 30 September 2015 (US$ million). 4 Includes Senior Officers, Board of Directors, and the Fern Trust. The Fern Trust is a family trust of Avnel s Chairman and CEO, Mr. Howard Miller. Avnel Gold MINING LIMITED 4 TSX:AVK

5 An Experienced Management Team Avnel has been operating in Mali for more than a decade Howard Miller Chairman & CEO Raised more than $600 million to finance the development or restart of 10 mines in Africa, Central Asia, and Canada over the past 35 years Dr. Olivier Féménias VP Geology Lead IAMGOLD s $32.5 million exploration program at Kalana Jeremy Link VP Corporate Development More than 10 years experience in exploration, mining, and capital markets Roy Meade President 35 years experience managing mines, construction projects, and feasibility studies in Africa, Central Asia, and Canada for junior and senior companies Alan McFarlane Chief Financial Officer 20 years experience in natural resources, principally gold Board of Directors John Kearney Keith McCandlish Andrew King Jonas Rydell Ibrahim Kantao Anthony Bousefield Howard Miller Avnel Gold MINING LIMITED 5 TSX:AVK

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10 The Kalana Exploitation Permit is Unique Exploitation Permit Awarded to Avnel in 2003 Initial 30-year term under the 1999 Mining Code Covers a large area of 387 km 2 (150 square miles) Originally granted to a Soviet Union aided state company in 1984 Low permitting hurdles for new mines Only significant approval required to develop new mines is an ESIA Kalana Main open pit mine ESIA submitted for review in Q ESIA approval expected in late Q1 / 2016 early Q Significant tax incentives for new mines 3-year tax holiday and tax exemptions Rolling exonerations of exploration and development expenditures Existing Soviet-era underground mine Invaluable for exploration and due diligence Helps maintain socioeconomic stability in the community Avnel Gold MINING LIMITED 1 0 TSX:AVK

11 Kalana Main PEA Highlights 1 (March 2014) 15.8 million tonnes treated at a diluted grade of 3.1 g/t Au to the mill PEA Mine Plan of 1.58 million contained ounces Current M+I mineral resources of 2.85 million ounces at 2.8 g/t diluted Contract mining Selective open pit mining operation 8.5:1 waste-to-ore ratio (8.1:1 excluding pre-strip) A small and simple operation 3,000 tonnes per day mining and milling operation (1.2Mtpa) Simple metallurgy and high recoveries 93% average LOM recovery in PEA with gravity + conventional CIL at 75 μm Optimisation studies report an increase to 95.6% in saprolite 14-year mine life Total production of 1.46 million ounces Average annual production of 135,000 ounces during the first 6 years Peak production of 200,000 ounces in Year 3 1 The Preliminary Economic Assessment ( PEA ) is preliminary in nature, includes inferred resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Avnel Gold has an 80% equity interest in SOMIKA, the holding company that holds the Kalana Exploitation Permit. Avnel Gold MINING LIMITED 1 1 TSX:AVK

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13 Kalana Main PEA Highlights 1,2 (March 2014) Initial capital cost of $147 million Low initial capital intensity of $100 per ounce of production Less than a two-year after-tax payback period at $1,110/oz Financeable for a junior company Total Cash Costs of $589/oz over LOM Total Cash Costs of $483 per ounce over first 6 years Includes 3% government royalty A low-cost producer Sustaining capital of $21/oz over LOM $31 million over the LOM Contract mining operation On-site AISC of $610/oz over LOM 1 The PEA is preliminary in nature, includes Inferred Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. A description of the basis of the PEA along with relevant qualifications and assumptions of the QPs may be found in the 31 March 2014 PEA NI Technical Report. 2 Highlights are reported on a 100% project basis utilizing a gold price of $1,110 per ounce and exclude 8% imputed interest on all pre-production capital expenses as reported in the PEA. All unit costs are expressed as the average over the life of mine, unless stated otherwise. Capital and operating cost performance measures are defined and reconciled in the appendix. Avnel Gold has an 80% equity interest in SOMIKA, the holding company that holds the Kalana Exploitation Permit. Avnel Gold MINING LIMITED 1 3 TSX:AVK

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15 Project After-Tax NPV and IRR 1,2 NPV in millions of dollars Discount Gold Price ($/oz) Rate $800 $900 $1,000 $1,110 $1,200 $1,300 $1,400 0% $85 $191 $297 $415 $510 $617 $723 5% $49 $126 $204 $289 $358 $435 $512 10% $25 $83 $142 $206 $258 $317 $375 IRR 18% 33% 46% 59% 70% 81% 92% 1 Based upon the 31 March 2014 Preliminary Economic Assessment Technical Report and unlevered cash flow model prepared by Snowden. The after-tax NPV and IRR presented in this table are from the commencement of construction on a 100% project basis that expenses all initial and sustaining capital in the year incurred and excludes the 8% imputed interest on all pre-production expenditures considered in the PEA. Avnel Gold owns an 80% equity interest in SOMIKA, the Malian company that holds the Kalana Exploitation Permit. The State of Mali has a 20% free-carried equity interest in SOMIKA. The above table excludes management fees of 0.75% of gross revenue, 2.5% of the mine s earnings before interest and taxes, and 4.0% of all capital expenditures that Avnel is entitled to as the operator. 2 The PEA is preliminary in nature, includes Inferred Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. A description of the basis of the PEA along with relevant qualifications and assumptions of the QPs may be found in the 31 March 2014 PEA NI Technical Report. Avnel Gold MINING LIMITED 1 5 TSX:AVK

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17 Optimisation Opportunities for DFS Financial optimisation 3-year tax holiday in the PEA is by calendar year, not operational year Inclusion of operator fees to be earned by Avnel Recovery of certain sunk project costs Larger open pit resource at Kalana Main since PEA Diluted M+I mineral resource of 2.8 million ounces 1.5+ million ounces of diluted M+I mineral resource added since PEA Potential to smooth out annual production profile in later years Larger mining scenario 1.5 Mpta in saprolite and 1.2 Mtpa in saprock & fresh rock Simple conventional gravity plus CIL process plant design Avnel Gold MINING LIMITED 1 7 TSX:AVK

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32 Appendix: Management Team Howard Miller Chairman and CEO Roy Meade President Alan McFarlane Chief Financial Officer Dr. Olivier Féménias Vice-President, Geology Jeremy Link Vice-President, Corporate Development Mr. Miller is a former lawyer with more than 35 years experience in the legal, financial, and natural resources sectors. He has raised more than $600 million to fund the exploration and development of ten mines in Africa, Central Asia, and Canada, principally for gold and precious stones. Mr. Miller was also a founding director of Nelson Resources Ltd., which was sold to LukOil for $2.2 billion in A trust of Mr. Miller s family owns about 11% of Avnel Gold. Mr. Meade is a Professional Engineer with more than 35 years of experience in the mining industry and has managed numerous mines, construction projects and feasibility studies in Africa and Central Asia. During the early 1990s, Mr. Meade was the General Manager of Anglovaal's Hartebeestfontein Gold Mine when it was a 1 million ounce per year producer in South Africa. Mr. Meade was also responsible for Nelson Gold s low-grade open-pit mine in Tajikistan. Subsequently, he was the Senior Vice President responsible for Barrick Gold s operations in Tanzania where he commissioned the Bulyanhulu Mine and successfully managed the Bank Guarantee Completion Test. Mr. Meade has been with Avnel Gold since its inception. Mr. McFarlane is an accountant and joined Avnel in 2009 as Vice President, Finance and Corporate Secretary, and was appointed Chief Financial Officer in Prior to joining Avnel, Mr. McFarlane served as Vice-President of Finance of Avocet Mining, an AIM-listed gold mining company. Dr. Féménias has a PhD doctorate in Geodynamics from the University of Brussels and the University of La Rochelle in France. He held the appointment of Assistant Professor at the University of Brussels from 2006 until 2009 when he was recruited by IAMGOLD to manage their $32.5 million Kalana exploration program until he joined Avnel in Mr. Link is a Professional Engineer and has held roles in exploration, mining, equity research, investment banking, asset management, and been a member of the management team of several gold mining companies. Mr. Link has a Bachelor of Geological Engineering (B.E.) from the University of Saskatchewan, a Master of Civil Engineering (M.Eng.) from the Schulich School of Engineering. Avnel Gold MINING LIMITED 3 2 TSX:AVK

33 Appendix: Board of Directors Howard Miller Chairman and CEO John Kearney Lead Independent Director Andrew King Independent Director Ibrahim Kantao Independent Director Anthony M. Bousfield Independent Director Keith McCandlish Independent Director Jonas U. Rydell Independent Director See management profile. Mr. Kearney is a lawyer with more than 25 years experience managing public companies. Mr. Kearney has been Chairman and President of Canadian Zinc Corporation since June 2003 and is involved with a number of other mining companies. Mr. King is a former investment banker with significant expertise in resource financing and operations within emerging markets, including Africa, Latin America, and Asia. Until departing Standard Bank in 2014, he spent the prior 14 years in a variety of roles, including managing the Resource Banking division. Mr. King graduated from the University of Witwatersrand with a degree in Metallurgical Engineering and has an MBA in Finance and Strategy from the London Business School. Mr. Kantao has more than 25 years of experience in the natural resource sector as a geologist and administrator. He is currently the Director General of AEL Mali SARL, a Malian mining service company. Previously, he was National Director of Geology and Mines for the Malian Government. Mr. Bousfield has more than 30 years experience in the finance sector and was the CEO of Merlin Group Securities when he retired in Mr. Bousfield is the Executive Chairman of the Fern Group Ltd. and is also a director of Diorite Securities, a trustee of the Fern Trust. Mr. McCandlish is a Professional Geologist with more than 30 years of international geological and engineering experience. Since 2008, he has been the Managing Director of DMT Geosciences Ltd., an international geoscience and engineering consulting firm. Mr. McCandlish has extensive experience in the areas corporate finance, technical audits, project evaluation, and mining fraud investigations. Mr. Rydell has more than 15 years experience in the finance Sector and has been employed as a Securities Analyst with Elliott Advisors (UK) since April Prior to that, he was a Vice President of Credit Suisse First Boston in London, UK. Mr. Rydell is also a director of Public Service Properties Investments Limited since Avnel Gold MINING LIMITED 3 3 TSX:AVK

34 Appendix: Community & Government Support Avnel has strong ties to the Malian Government, the Village of Kalana and other surrounding communities Kalana has a population of > 9,000 people We currently employ 366 Malians directly Only 5 expats on site Significant indirect employment Mine clinic provides community health services 1 doctor, 2 nurses Sponsor four clinics in the region Improved health, especially for children We have electrified most of the community We have improved access to potable water for the community We have built 4 schools (11 classrooms) Provide the teachers, desks, and supplies Provide a proper French education Avnel Gold MINING LIMITED 3 4 TSX:AVK

35 Appendix: Kalana Mineral Resource Statement As at 30 September 2015 Tonnes (Mt) Grade (g/t Au) Contained Gold (Moz) Measured Kalana Main Indicated Kalana Main Kalana Main Tailings Measured + Indicated Kalana Main Kalana Main Tailings Total M + I Inferred Kalana Main Kalanako Total Inferred The Kalana Main pit and the historic Kalana Main tailings Mineral Resource estimates are as at 30 September The Kalanako pit Mineral Resource estimate is as at 19 March Mineral Resources are disclosed on a total project basis at 100%. Avnel Gold owns an 80% equity interest in SOMIKA, the Malian company that holds the Kalana Exploitation Permit. 2. The determination of pit-constrained Mineral Resources at Kalana Main are based upon a gold price of $1,100 per ounce and a 1.2 million tonne per annum mining operation; pit slope angles ranging from 32 degrees in saprolite to 55 degrees in fresh rock; estimated bulk mining cost beginning at surface ranging from $2.26 to $2.57 per tonne mined (averaging $3.10 for the selected pit); estimated processing, grade control incremental ore costs, mining overheads, and G&A costs ranging from $22.38 to $30.32 per tonne of ore; and a range of gold recoveries averaging 94%. 3. Unless stated otherwise, tonnages are metric tonnes and are rounded to the closest 0.0 million tonnes, grades are rounded to the closest 0.00, and contained gold rounded to the closest 000 and are reported as troy ounces. All reported grades and tonnes are prior to dilution. Mineral Resources for the Kalana Main deposit are reported following depletion from historical production. 4. Mineral Resources for the Kalana Main and Kalanako deposits are reported above a cut-off grade of 0.9 g/t Au and were estimated by Ivor W.O. Jones, who is recognised as a Qualified Person for the purposes of NI No cut-off has been applied to the tailings as all tailings are proposed to be treated. Grades were estimated using Multiple Indicator Kriging (MIK), with the exception of the historical tailings grade, which is estimated from historical production. 5. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant factors. These Mineral Resources are reported using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council. 6. The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category. Avnel Gold MINING LIMITED 3 5 TSX:AVK

36 Appendix: Kalana Main Diluted Resources As at 30 September Mineral Resources are disclosed on a total project basis at 100% as at 30 September Avnel owns an 80% equity interest in SOMIKA, the Malian company that owns the Kalana Exploitation Permit. Some amounts in this table may not compute due to rounding and truncation. 2 Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 3 See Avnel s news release dated 5 October 2015 for more information. Avnel Gold MINING LIMITED 3 6 TSX:AVK

37 Appendix: PEA Breakdown & Reconciliation Capital Cost Breakdown Item $M 1 Pre-Strip 2 Infrastructure & Utilities Power Plant Process Plant Ancillary Buildings New Tailings Facility EPCM Community Resettlement Indirect & Owners Costs Contingency Initial Project Capital Sustaining Capital 31.4 Closure Costs 10.0 Total LOM Capital Cost Item $/t 1 $/oz 1 Mining Processing Site G&A $30.29/t $16.37/t $4.50/t $326/oz $176/oz $48/oz Site Cash Operating Costs $51.16/t $551/oz Royalties & Selling Costs Total Cash Costs 3 Sustaining Capital On-site AISC 4 Closure Costs Initial Project Capital Operating Cost Breakdown Total Project Cash Costs 5 $38/oz $589/oz $21/oz $610/oz $7/oz $100/oz $717/oz 1 Derived from the 31 March 2014 Preliminary Economic Assessment NI Technical Report prepared by Snowden utilizing a gold price of $1,110 per ounce for the determination of royalties. All amounts reported on a 100% project basis. All dollar amounts are in millions of US dollars, except for unit costs, which are in US dollars. Some amounts may not compute due to rounding and truncation. 2 Pre-strip, sustaining capital, and closure costs are excluded from the contingency amount as presented in the PEA. 3 Total cash costs include mining, processing, site G&A, royalties and selling costs and are exclusive of depreciation, amortization, reclamation, construction, development, exploration and other non-site costs over the life of mine. 4 On-site All-in Sustaining Costs or On-site AISC is defined as Total Cash Costs plus Sustaining Capital costs over the life of mine and excludes corporate G&A and exploration expenses as per the PEA divided by the expected number of ounces to be recovered over the life of mine. 5 Total Project Cash Costs are defined as Adjusted AISC plus Initial Project Capital and Closure Costs. Avnel Gold MINING LIMITED 3 7 TSX:AVK

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